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Helvetia: Results Don't Look Spread-Moving

FINANCIALS

Helvetia results missed on higher loss rates, especially in Germany. This doesn’t look to be a credit moving set of results and laterals are very limited as the company is one of the last to report. (HELN SW)


  • Key credit metrics: SST (Swiss solvency) ratio is >280% at 1-Jan-24 (from 300% at Jun-23). S&P reaffirmed the A+ rating on 20-Mar-24, against a management target of A.
  • Business volumes beat consensus (CHF11.3bn vs. 10.8 est.) but net income was lower y/y due to elevated natural catastrophe claims (a common theme this results season). The combined ratio missed. Net underlying income of CHF372.5m was a quarter lower than last year and missed consensus of CHF449.8bn quite significantly. The dividend of CHF6.3 is also below consensus (of 6.63).
  • Outlook: this simply states that the group is well positioned. In fairness, volumes appear strong, but we’d hope for a better underwriting outturn. Group strategy is being reviewed to be presented at the CMD in December.

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